The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1887-12-21
GRAND TRUNK STOCKHOLDERS.
Likely to DIsapprove a Plan Affect-
Ing the Canadian Pacific.
Proposal to Transfer the Latter Road
TO the Government.
A Three Per Cent Guarantee for Ger
tain Valuable Rights.

LONDON, Dec. 20-The Financial News
publishes an article. which Is exciting great
interest. 1t is headed ''The Canadian Paeif-
ic Guarantee" and refers TO the current re-
port that the Canadian government is about
to take over the Canadian Pacific Railway,
giving as a return perpetual guarantee Of 3
per cent. The proposal was mentioned in
the Times, and is the subject Of pamphlet
just issued by an Anglo-Canadian writer,
who strongly supports the suggestion that
the line be acquired by the Dominion, the
government obtaining six distinct privileges
In exchange for the guarantee. These are:
Fifteen million acres Of selected land along
the line, railway monopoly rights. free uss
of telegraphs, the right to transport troops
and stores at working cost, half the profits
beyond 3 per cent and the control Of the
rates. Anglo-Canadian maintains
strongly that both the shareholders and the
community would make an excellent bargain
on these terms.
The News says: mo doubt; but 1t occurs
to us that these six concessions are an ex-
treme price to pay for perpetual per cent
guarantee. The risk 70 the Dominion gov
ernment Is inhnite5sinlal, and the return GER
tain and rich. Such risk as there Is to the
Dominion would net come into operation for
Dix years. DttduSt tIf. YItotHt kudAdutCc Hdo
that period to run. Consequently the line TO
be acquired would not be the Canadian Pa
cihc Railway of today, but the line after six
years further development The surrender
of monopoly rights in the Northwest and
the opening OF the whole country 10 railroad
enterprise would alone almost compensate
the Dominion for per cent guarantee, en-
falling, as IL would, an Immediate and exten-
siye growth Of trade and industry In Mani
toba and the Northwest and, In the second
would put an end to such serious complica-
tiOns as that which recently threatened the
peaeeOf the Northwest. Add to this the
enormous advantage Of government control
of rates, which would be an essential feature
of any purchase scheme. Anglo Canadian
points out that any preliminary loss Inn
posed by general reduction OF rates 70
low level would be more than recOuped by
the relief to the pockets of every one using
the railway and the instantaneous growth OF
traffic.
But "Anglo- Canadian omits to consider
that the low rates would thus be forced up
on the whole railway system OF Canada,
thus greatly increasing the value OF the bar
gain to the community. No doubt the IN
vestors in the Grand Trunk have cause for
complaint, but this would probably give adj
dtiOnal zest to the enjoyment OF the Cana
dans. The Grand Trunk Is not popular In
the Dominion because OF its fostering the
United States through business to the detri--
ment Of Canadian shippers, and because OF
its determined opposition TO the construction
Of the Canadian Pacific. "Anglo-Canadian
deals shortly with the possibility that the
Grand Trunk might also claim TO be bought
up. This the pamphleteer dispOses OF on the
| simple ground that the Grand Trunks begins
and ends in the United States, its capital,
| per mile, Is three times that Of the Canadian
Pacific and 1t it has no great privileges TO ex-
i change for guarantee. It Is developed
| line and, in word, there Is no parallelism
between the two cases. What we suggest as
| a fair price for perpetual guarantee would
| be the last five concessions already nameoS
| The shareholders should retain their land
| rights, giving up to the government the rail-
way monopoly. telegraphs, the right to trans
| port troops etc, the control OF rates, ana
| half the profits beyond per cent. On these
| terms the bargain would be quite fair TO the
| government and not too hard for the share
| holders. The lands would remain to be dis
posed Of as a bonus TO the Shareholders,
| after heing put into marketable form to
| tempt present prospective settlers TO pur-
| chase, even at a valuation OF 81 per acre,
| instead of SO to IS, at which sales are actual
| ly being made. The land warrants now give
bonus of 20 shillings per share. Al shit
lings per acre they would produce 70 Snlllings
| per share. This would probably be realized
| In few years. Then the shareholders might
| fairly estimate the present market value OF
| a per cent. perpetual guarantee at S5, sur
| plus rights stock, issued separately, AZ 10,
and warrants at 90 or 20shillngs In all per
| share.
! Van Horne contradlcts u.
MONTREAL, Dec. 21.-The rumors that the
| CanadianPacifc is to be leased by the Domin-
ion government on guarantees Of 8 per cent.
| Is emphatically denied by General Manager
| Van Horne and Sir Donald Smith, Of the
| Canadian Pacific directorate. Van Horne
/ stated that no such action Is contemplated
| by the government or the railroad. and that
| neither the government nor anybody else
would ever get the Canadian Pacific on any
| thing like q per cent. basis.